Russia Opens Crypto to Qualified Investors

Russia to Allow Crypto Purchases for Qualified Investors

The Bank of Russia is proposing a significant shift in its cryptocurrency stance. A new experimental legal regime is under consideration, paving the way for qualified investors to purchase crypto assets. This move, announced in a recent press release on the bank's website, represents a cautious approach to regulating the crypto market within Russia.

Key Aspects of the Proposed Framework

• Limited Access: Only highly qualified investors will be permitted to participate. This includes individuals with over 100 million rubles in securities and deposits or an annual income exceeding 50 million rubles, along with corporate qualified investors and financial organizations.
• Experimental Legal Regime (EPR): A three-year EPR will be established to test the regulatory framework and monitor associated risks.
• No Domestic Payments: Despite this development, the central bank maintains its position that cryptocurrencies remain illegal as a means of payment within Russia. This aligns with the recent legalization of crypto for international transactions only, aimed at circumventing Western sanctions.
• Investment Options: Qualified investors would also have access to crypto-linked derivatives and digital financial assets, providing exposure to the crypto market without direct asset ownership.

The Bank of Russia's proposal emphasizes increased market transparency and the establishment of service standards. This approach prioritizes protecting investors while offering experienced participants expanded investment options. Further regulatory requirements for financial institutions will be based on the associated risk levels. This carefully considered approach highlights a balance between innovation and risk mitigation within the evolving regulatory landscape.

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